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Table 5: Status Report on Major Crown Projects

1. Description

Health Information and Claims Processing Services (HICPS) Major Crown Project (MCP).

HICPS is the key delivery mechanism for the payment of pharmacy, medical supplies and equipment, and dental benefits under Health Canada's Non-Insured Health Benefits (NIHB) Program. It supports the delivery of much-needed health benefits for over 800,000 eligible First Nations and Inuit clients.

The HICPS MCP was established to conduct a competitive procurement to replace the existing HICPS contract, to manage the implementation of the new service contract and to ensure a smooth transition from the current incumbent to the new contractor. The HICPS contract was awarded on December 4, 2007 to ESI Canada. The new HICPS System will be put into production on December 1, 2009.

2. Project Phase

The HICPS MCP is now in the project's Pre-Implementation Phase, which started upon contract award to ESI Canada on December 4, 2007. In accordance with Treasury Board (TB) policy on the Management of Major Crown Projects, this phase will end on November 30, 2010, after one full year of normal contract operations under the new HICPS Contract.

3. Leading and Participating Departments and Agencies

This subsection lists the participants (departments) associated with the HICPS MCP.

Lead Department or Agency: Health Canada
Contracting Authority: Public Works and Government Services Canada
Participating Departments and Agencies: Indian and Northern Affairs Canada

4. Prime and Major Subcontractor

Prime Contractor: ESI Canada, Mississauga, Ontario, Canada
Major Subcontractors: Resolve Corporation, Toronto, Ontario, Canada

5. Major Milestones

Major Milestones
Major Milestones Date
Initial meetings with Contractor, coordination of the pre-implementation phase project plan From Contract Award (December 4, 2007) until January 2008
Business Requirements Gathering and System Design February 2008 to August 2008
HICPS System Development September 2008 to April 2009
HICPS Testing and Acceptance May to September 2009
Documentation, Simulations, Validation, Data Conversion and Training September 2009 to November 2009
HICPS Implementation (ESI Canada officially takes over real-time service provision) December 1, 2009
Project Close-Out Phase: Evaluation of the HICPS Project and lessons learned. December 2010 to March 2011

6. Progress Report and Explanations of Variances

The definition phase of the HICPS MCP (including the Request For Proposal (RFP) process through bid evaluation and ultimately contract award on December 4, 2007) was concluded on budget, and the project pre-implementation phase is now underway.

A detailed Pre-Implementation Plan has been approved, and the Project's governance committees have been established. As of March 31, 2008 the Project is in the midst of the process to gather and define the business requirements for the new HICPS system, and work is proceeding such that the first milestone will be achieved on-time and on budget.

The Project's schedule and budget are consistent with the project authorities granted.

7. Industrial Benefits

HICPS supports the delivery of much-needed health benefits for over 800,000 eligible First Nations and Inuit clients. As such, the Industrial Regional Benefits model was modified to focus on benefiting the Aboriginal economic community, rather than a specific industry or region of Canada, resulting in an Aboriginal Benefit Requirement (ABR) which is unique to the HICPS MCP.

The development of the ABR approach for the HICPS MCP was informed by industry feedback through two Request for Information consultation processes, and approved by Treasury Board. As HICPS Prime Contractor, ESI Canada will be required to ensure a mandatory and substantial Aboriginal benefits requirement representing direct or indirect benefits to Aboriginal businesses or individuals.